Economics Case Solutions

Introduction The hospitality industry, especially the hotel industry is cyclical in nature and room occupancy ratio drops and rises on multiple factors such as economic condition, spending power of the consumers and the person’s preference of travel destination. The other factors also affectthe hospitality industry such as currency of that country.If the visiting country’s currency […]

1. Is there any arbitrage opportunities among cross currencies? There is no arbitrage opportunity assessed in other currencies pairs as well due to such a high transaction cost the risk-free profit that can be earned using arbitrage turns into loss. 2. Using Triangular Arbitrage Triangular Arbitrage is taking advantage of arbitrage opportunity due to pricing […]

QUESTION 1 Macro-Economy:  Historically, what has been the strengths and weakness of the Eurozone economy?    Analyze the market organization, institutional framework and economic structure of the Eurozone during the prior decade (1990-2010).  Critically evaluate the strategies implemented to make Eurozone a dominant global player.             Eurozone is defined as one of the largest economic regions […]

Macro Economy:             Marco economy is the economic system of a country or a whole region. The macroeconomics deals with the performance, structure as well as decision making of an economy as a whole. What have been the strengths and weaknesses of the Euro zone economy? Strengths: The first strength is that it has no […]

Earnings Management The innovative methods that firms or banks use to report their economic performance in order to misguide the stakeholders or some of them arereferred as earnings management. Earnings management is a practice that is carriedout by a person from inside the organization in order to leave some influence on the contractual outcomes as […]